Refer to the diagram. If this somehow was a costless product (that is, the total cost of any level of output was zero), the firm would maximize profits by
A)selling the product at the highest possible price at which a positive quantity will be demanded.
B)producing Q₁ units and charging a price of P₁.
C)producing Q₃ units and charging a price of P₃.
D)producing Q₂ units and charging a price of P₂.

Question

Refer to the diagram. If this somehow was a costless product (that is, the total cost of any level of output was zero), the firm would maximize profits by
A)selling the product at the highest possible price at which a positive quantity will be demanded. 
B)producing Q₁ units and charging a price of P₁. 
C)producing Q₃ units and charging a price of P₃. 
D)producing Q₂ units and charging a price of P₂.

Quizplus · Accepted Answer

The Answer of  Refer to the diagram. If this somehow was a costless product (that is, the total cost of any level of output was zero), the firm would maximize profits by
A)selling the product at the highest possible price at which a positive quantity will be demanded. 
B)producing Q₁ units and charging a price of P₁. 
C)producing Q₃ units and charging a price of P₃. 
D)producing Q₂ units and charging a price of P₂.

Refer to the Diagram